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December 2016

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A workers strike at one of the Chinese suppliers to Uniqlo, a Japanese apparel retailer, has been attributed to the factory’s decision to relocate the workers to a new plant five kilometres away.

Last month, workers struck work at Shenzhen Artigas Clothing & Leatherware Factory, an apparel factory managed by Lever Style, a supplier to Uniqlo.

According to a Fast Retailing press release, the parent company of Uniqlo, the workers requested that the company should terminate their contracts and pay them severance.

With regards to this request, Fast Retailing said Lever Style is encouraging the workers to engage in dialogue with the management.

“In addition, Lever Style has established telephone hotlines to facilitate direct communication with the workers,” the apparel marketer added.

Lever Style has assured Fast Retailing that working conditions, including the workers' remuneration or benefits, will be maintained at the time of the relocation.

Lever Style said it currently meets all of its legal obligations with respect to the payment of social security, overtime and unused paid holidays.

However, since the new facility is in the same district as the current facility, there is no legal requirement for Lever Style to pay any compensation for workers who decline to continue with their employment contracts due to the relocation.

Lever Style also assured Fast Retailing that no worker has been dismissed because of the relocation and it is actively encouraging striking workers to join their colleagues at the new facility.

Fast Retailing added that its CSR programme places top priority on respecting human rights of workers and improving the working environment for workers employed by the company's production partners.

Ever since the strike began this June, Fast Retailing has requested Lever Style to respect workers human rights and employment at Shenzhen Artigas Clothing & Leatherware factory and resolve the strike.

At the same time, Fast Retailing has requested Lever Style to engage in a dialogue with the workers who are on strike, as well as continue with social security payments, maintain working conditions, and ensure employment.

Fast Retailing believes that in order to resolve the strike in a peaceful manner, it is necessary to align the opinions of the factory and the workers. (AR)